Debt restructuring negotiates with creditors to modify terms while avoiding bankruptcy. It can reduce interest rates, extend payment periods, or reduce principal. Bankruptcy is a legal process that eliminates or reorganizes debts but has significant long-term credit implications. Restructuring is often preferable when viable.

Restructuring may have a temporary impact on your credit score, but it's typically less severe than bankruptcy or defaulting on debts. More importantly, successfully completing a restructuring plan helps rebuild your credit over time and demonstrates responsible debt management.

Most unsecured debts (credit cards, personal loans, medical bills) can be restructured. Secured debts (mortgages, car loans) may be modified depending on circumstances. Some debts like student loans and tax obligations have specific restructuring processes. We'll evaluate your complete debt profile.